The Rise of Cryptocurrency and It’s Ecosystem

  • Bitcoin and Ethereum are facing resistance at the declining 50-DMA ($31.43 on GBTC ETF), but Bitcoin had a Follow Through Day on February 4th. However, distribution currently sits at three days. If we undercut the low of Feb 4 at $25.51, then GBTC rating will be shifted to Under Pressure, and we may see further downside.
  • There are handful of listed companies within our Cryptocurrency Ecosystem Framework. The Framework consists of Miners, Exchanges, Enablers, and Users.
  • Many of the companies within the framework have high correlation coefficients to Bitcoin; namely, MARA, MSTR, SI, GLXY.CA, RIOT, and HUT. For those investors that cannot invest in Bitcoin directly, these stocks may provide an indirect but highly correlated exposure to Bitcoin.
  • These stocks are technically in downtrends, however. We recommend waiting until technical profiles improve before adding to positions.

Global Banks

In this report, we examine the past cycles of interest rate hikes and the performance of the banking sector. Specifically in the U.S., we looked at the following rate hike cycles:

 

  • November 1986 – February 1989: Interest rate increased to 9.75% from 5.88%
  • January 1994 – February 1995: Increased to 6.00% from 3.00%
  • June 2004 – June 2006: Increased to 5.25% from 1.00%
  • November 2015 – December 2018: Increased to 2.5% from 0.25%